Burger King: Whadaya think?
- Thread starter 3Rfan
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ag-man
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Kinda tells us something about the tax code here doesn't it ? Then we all wonder why businesses are leaving !!!
Thats the point. They aren't leaving. They are using our infrastructure and the great things about this country and not paying their fair share.
You people amaze me. You go crazy about individual freeloaders but somehow defend corporate freeloaders. It boggles the mind.
You people amaze me. You go crazy about individual freeloaders but somehow defend corporate freeloaders. It boggles the mind.
Exactly!! The corporate loopholes really burn my bum. 60 minutes did an expose' on this in the past year. In many cases, American companies are posing as international or foreign companies with nothing more than an office as their headquarters somewhere out of the US. It is costing us billions. Why is nothing being done?? Could it be because corporate America = Republicans? Or just too many politicians with their pockets lined by these companies? What Burger King and other corporations are doing is theft by fraud!! As our tax laws are now, I can't blame the companies that are taking advantage of the loophole.
Meanwhile, a third of my paycheck goes "poof" each month.
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ag-man
Guest
What infrastructure are you talking about exactly Duck?
Why is a company that tries to reduce their tax burden through legal channels freeloaders ? Do you go to your CPA every year and tell them you want to pay as much as you possibly can ?
Our countries tax rate is higher than other countries and it is the fault of business for trying to reduce said expense ?
A "for profit" business wanting to keep more of their earnings is bad, but an individual setting at home on welfare, eating cheetos and watching t.v. is good ?
Why is a company that tries to reduce their tax burden through legal channels freeloaders ? Do you go to your CPA every year and tell them you want to pay as much as you possibly can ?
Our countries tax rate is higher than other countries and it is the fault of business for trying to reduce said expense ?
A "for profit" business wanting to keep more of their earnings is bad, but an individual setting at home on welfare, eating cheetos and watching t.v. is good ?
Fix the loopholes, lower the corporate tax rate similar to what the rest of the free world is paying, and you won't have all this mess. Then, if they want to leave, they have to physically move their company. It is kind of hilarious that the libs in congress say we are in a "global" economy now, but get upset when a company uses loopholes (albeit stupid ones) to take advantage of the "global" economy. They want their cake and want to eat it too. (and their ice cream, and...........).
I agree. Lower the tax rate and then close all the loop holes. And while we are at it, let's lower the self employment tax. That sucks.
It's all similar to Rockhurst using Kansas kids to win Missouri state championships, they're playing within the rules, so it's ok.
Does anyone honestly believe that corporations pay much more than the 15% Canadian corporate rate?
15 to 39% federal, 0 to 12% state, and 0 to 3% local. IF and I say IF you went at the high end on all you are looking at 54%. I pulled this up on wiki. I'm sure there are better web-sites.
Here's the problem Duck. Until it's illegal for them to do so, I have zero problem with them doing so. Just like stated above, are you going to tell your accountant to make sure you pay as much as possible in taxes? Ofcourse not, you're going to get every dime you can back. Same thing, just on a grander scale.
There's a few stories that are made by this move. You can't ignore the reasoning behind the move.
Am I wrong or doesn't ALL income earned in the US get taxed as US income regardless of your residence (headquarters).
This move is to shelter income from abroad from US income tax.
What tax "loopholes" does BK get?
This move is to shelter income from abroad from US income tax.
What tax "loopholes" does BK get?
And they pay taxes on every dime made in the US to the IRS. What isn't their fair share about that?
What does BK get as a "freeloader"?
If people don't like something that a certain business is doing then don't buy their stuff. I have not bought gas at a BP since the spill and have never been a big Burger King person so I will not be buying their products. That's my right and my choice. In the case of Burger King they have broken no laws and when I do my taxes I take full advantage of what the law allows I would expect these companies to do no less. This country needs to change it's tax code but that will only happen when those with money decide to buy enough votes to do it and then it might not happen because our politicians only work about 7 months a year and can't make any decisions when they are at work. As a nation we need to vote every one of them out of office and start from scratch.
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ag-man
Guest
You know what I mean. Every dime they payed before "relocating" to Canada.
Notice how no one is pointing out all those "loopholes" they keep talking about?
How it works...
All Burger King's in the US will have to pay licensing fees and royalties to the corporate headquarters in Canada, thus avoiding paying US taxes on income generated by the licensing fees and royalties in the US, and paying a lower tax rate in Canada.
Additionally, Burger King can load up some of it's debts from all international operations on US franchises, and interest paid on debts is a tax deduction for US franchises, thus increasing profits at corporate headquarters.
All Burger King's in the US will have to pay licensing fees and royalties to the corporate headquarters in Canada, thus avoiding paying US taxes on income generated by the licensing fees and royalties in the US, and paying a lower tax rate in Canada.
Additionally, Burger King can load up some of it's debts from all international operations on US franchises, and interest paid on debts is a tax deduction for US franchises, thus increasing profits at corporate headquarters.
Miller I was NOT talking about after they move to Canada. You and I both know NO ONE pays taxes on every dime they make in the U.S. and big companies have waaaay more deductions than you and I have. I use the short form and I don't pay taxes on every dime I make.
Re: How it works...
How can they make a US franchise owner take the debt from an overseas franchise? They have contracts.
All income EARNED in the US is taxable to the US treasury. It makes no difference how it is EARNED.
How can they make a US franchise owner take the debt from an overseas franchise? They have contracts.
This thread is about BK moving to Canada to avoid US taxes. (thread you started).
I say they pay the same on US income as before the relocation.
You say you weren't talking about the move????????
I never argued that corporations don't have deductions.
Miller you are one confused dude, or just trying to confuse the issue. You said they pay taxes on ALL income in the U.S. I said they do NOT nor does anyone else, that has NOTHING to do with the move which IS an attempt to pay even LESS taxes in U.S. You and I don't pay taxes on every dime we make and Burger King sure as heck doesn't.
Re: How it works...
Still don't see how that income would be different than other income derived from US activities. While that would constitue a few "dimes" it hardly is a substantial savings on taxes. The reason for the move is it makes all foreign income taxed at a much lower level. All US earnings can't leave the US untaxed.
I guess I thought the issue was why BK moved to Canada! My bad. What is the issue?
When I said "you know what I mean" I guess you don't. Let me explain. When I said every dime, I meant every dime they were paying before they moved.
I am well aware no one pays taxes on every dime of income and didn't mean to imply BK did. They still pay current US tax rates on every dime of income generated in the US just as before. The move was made to shelter foreign income from the much higher US rates.
Hope this helps clarify.
My original post was about them moving. You said they pay taxes on ALL of the income they earn here and you still insist they pay the current tax rate. I insist NO big company pays the current top rate that everybody complains about. I don't know what the top rate is, I don't own a business, but any business that pays the top rate needs a new CFO or accounting firm because it's too easy to get out of paying that rate top rate.
If they already weren't paying taxes, why did they leave? They are paying basicly the same as before except not on foreign income.
I doubt if anyone on here is corporate tax experts and know all the ins and outs of BKs move to Canada. But there should be no doubt that it will save BK money and cost US money.
This is only a big story because BK is a highly visible company. Other companies have been doing the same thing for years but there hasn't been an uproar because they have been tech companies or financial companies that the average American doesn't identify with or deal with on a daily basis.
IF BK survives the public backlash, expect more US companies that are traditional American institutions that everyone is familiar with to follow suit.
America was built on big business and the money they contribute to our economy. In this day of the "global economy", I am afraid that America will suffer.
This is only a big story because BK is a highly visible company. Other companies have been doing the same thing for years but there hasn't been an uproar because they have been tech companies or financial companies that the average American doesn't identify with or deal with on a daily basis.
IF BK survives the public backlash, expect more US companies that are traditional American institutions that everyone is familiar with to follow suit.
America was built on big business and the money they contribute to our economy. In this day of the "global economy", I am afraid that America will suffer.
I saw a piece on this yesterday and the business/financial expert they were talking to said there had only been something like 10 companies make this kind of move between 2000 and 2012, Since that time there have been 21 do it. They love all the stuff the USA brings to help build a business, they just don't wanna help pay the stuff that gave them that help.
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